Camilla Jessen
Trump claims U.S.-China trade talks are underway, despite Beijing’s denial.
Former U.S. President Donald Trump said on Thursday that the United States had resumed trade discussions with China, despite Beijing publicly denying that any such negotiations are taking place.
“They had a meeting this morning,” Trump told Euronews reporters during a meeting with Norway’s prime minister at the White House.
He did not identify who attended the meeting, adding only, “It doesn’t matter who ‘they’ is… we may reveal it later.”
Earlier in the day, China’s Ministry of Commerce spokesperson He Yadong rejected claims that trade talks were underway.
“There are currently no trade negotiations taking place between China and the United States,” He said at a press conference, calling reports of renewed talks “speculative” and lacking factual basis.
The comments come after Trump said earlier this week that he intended to reduce tariffs on Chinese goods “substantially, but they won’t be zero.”
Currently, the U.S. maintains import duties of 145% on Chinese products, with China responding with 125% tariffs on U.S. goods, alongside non-tariff measures, including rare earth export restrictions and halts on Boeing aircraft purchases.
The Wall Street Journal reported on Wednesday that the Trump administration is considering lowering tariffs to a range of 50% to 65%.
In response, He said that if Washington wanted to resolve trade tensions, it should remove all unilateral tariffs and engage in “equal dialogue.”
Later on Thursday, Trump posted on Truth Social, criticizing China over Boeing orders and the continued flow of fentanyl into the United States.
“Fentanyl continues to pour into our country from China, through Mexico and Canada… and it better stop, NOW!” he wrote.
In February, Trump imposed tariffs of 20% on China and 25% on Canada and Mexico over fentanyl trafficking concerns.
Markets Rally on Hopes of De-escalation
Despite the conflicting statements, investors interpreted Trump’s remarks as a potential softening in trade tensions. Global equities rallied on Thursday, with the S&P 500 rising 2%, led by technology shares, reaching its highest level since April 3.
In Europe, the Euro Stoxx 600 and Germany’s DAX extended gains for a second week. The DAX now sits around 6% below its March all-time high.
Asian markets followed suit on Friday.
Japan’s Nikkei 225 climbed over 2%, South Korea’s Kospi rose more than 1%, and Hong Kong’s Hang Seng Index gained 1.5%, recovering most of April’s earlier losses.
The People’s Bank of China reaffirmed its commitment to a supportive monetary policy to help counter the effects of trade friction.